Choice Logistics Completes Transition to Supply Chain Focus

Sells ground courier business, concentrates on mission-critical logistics solutions and services

Sells ground courier business, concentrates on mission-critical logistics solutions and services

New York — February 23, 2005 — Service supply chain specialist Choice Logistics has closed the sale of its ground courier business, completing the company's transition to a provider of mission-critical logistics solutions and services.

Founded in 1964 as a ground courier company focused on local same-day deliveries in seven states, primarily on the East Coast, Choice more recently has turned its focus to providing services for the spare parts supply chain.

"We recognized many years ago that technology would virtually eliminate the need for hand-delivered documents," said Michael Katz, CEO for Choice Logistics. "Identifying these trends over ten years ago motivated Choice to focus on its service parts logistics business and begin exiting the ground courier business over two years ago."

Choice had initially considered selling the courier business to one of the national, publicly traded courier companies but then saw the strategic and customer advantages to working a deal with multiple, locally owned courier companies in each of the seven markets that it served.

The move to streamline the business provided immediate benefit to the company and its stakeholders, according to Choice.

"Since deciding to make the transition, the entire organization has been able to focus on the logistics business, which has been growing exponentially year-over-year, as opposed to spending time building up the extremely labor-intensive courier business," said Katz. "The increased focus and success has allowed the client base to realize even greater results, while providing a significant impact to the bottom line."

To maintain consistency throughout its transition process, Choice said it took several steps to ensure the continued success of its logistics business. In 2003 Choice updated its ISO certification, originally awarded in 1998, to 9001:2000. The company has experienced no executive turnover or change in processes while implementing more than 260 active strategic stocking locations (SSLs) around the world to provide expedited delivery services 24x7x365 for direct parts deployment.

"It's not surprising that Choice Logistics has capitalized on the ripe opportunities within the service parts logistics arena," said Mark Vigoroso, vice president of post-sales service research at technology consultancy AberdeenGroup. "Our research indicates that best-in-class companies are actively looking to automate and optimize their service chains in order to drive revenues, bolster profitability and shore up customer satisfaction."

For more information on solutions for the service and support chain, see the articles "In the Field and All Grown Up," the Net Best Thing column in the June/July 2002 issue of iSource Business (now Supply & Demand Chain Executive), and "Time to Prove It," the Net Best Thing column in the April/May 2003 issue of the magazine.

For best practices in service parts management, see the article "Three Keys to Successful Service Parts Management."